Classical investment approach

Scenario-based
approach

Wealth preservation
approach

Main goal

Long-term participation in market returns

Achieve positive returns every year

Preserve capital through all cycles

Basic convictions

Adherence to a strategic asset allocation provides the best results

Following credible market scenarios provides the best results

Wealth preservation is more valuable than return maximization

Investment horizon

Long-term

Flexible, adapted to the investment thesis

Flexible, depending on wealth preservation targets

Driver of asset selection

Maximize long-term risk-return profile

Scenario-based assumptions on risk-return trade-offs

Protection against unacceptable loss

Risk management

Diversification and limited deviation from strategic asset allocation

Diversification and adaptation to evolving scenarios

Diversification and risk reduction whenever wealth preservation targets are threatened